Which of the following statements with respect to eligible dividends paid in 2011 is not correct?
A)The recipient individual shareholder must gross them up by 41 percent.
B)They generate a federal tax credit equal to 13/23 of the gross up.
C)They can only be designated as eligible dividends by public companies.
D)They can be designated as eligible dividends by a CCPC with a positive GRIP balance.

Question

Quizplus · Accepted Answer

Eligible dividends can be designated by both public companies and private Canadian-controlled private corporations (CCPCs) with a positive general rate income pool (GRIP) balance.

Which of the Following Statements with Respect to Eligible Dividends